Indian benchmark indices Sensex and Nifty are likely to open lower on November 7, tracking weak global cues. If the decline extends, it would mark the third consecutive session of losses for Indian equities in this truncated trading week. At 8:00 am, the GIFT Nifty was around 25,485, down 105 points or 0.4 percent.
On November 6, the Nifty fell 87 points to close at 25,509. The broader market underperformed, with the Nifty Midcap 100 slipping 0.95 percent and the Nifty Smallcap 100 falling 1.4 percent. Among sectoral indices, only Nifty IT and Auto managed to post marginal gains, while Media, Metal, and Consumer Durables were the top laggards.
Ponmudi R, CEO of Enrich Money, said that the fragile risk sentiment is expected to keep traders on edge as they monitor developments in the India–US trade negotiations for fresh direction. However, resilient Q2 earnings and softer crude oil prices may provide some support and help cushion downside pressure, he added.
Technically, the index now finds immediate support between 25,450 and 25,150, while resistance is placed around 25,660–25,800. The short-term sentiment remains weak, with traders likely to adopt a sell-on-rise approach until a decisive reversal signals renewed strength.
Globally, investor sentiment turned sharply cautious overnight, with Wall Street witnessing a broad-based sell-off led by technology and AI-linked stocks — one of the steepest declines in recent weeks. Weak US job data, fresh layoffs in the tech sector, and rising concerns over stretched AI valuations triggered profit booking across growth names.
Adding to the jitters, the ongoing US government shutdown — now in its second month — has delayed the release of key economic indicators, clouding visibility into the true state of the economy and complicating the Federal Reserve’s policy outlook on the timing and extent of future rate cuts.
The Dow Jones slipped nearly 400 points, while the S&P 500 and NASDAQ Composite declined over 1 percent each.
Asian markets followed suit this morning, tracking Wall Street losses amid persistent concerns about expensive valuations in AI-related stocks. Japan’s Nikkei 225 index tumbled 1.93 percent, the Topix index fell 0.99 percent, and South Korea’s Kospi dropped 1.47 percent.
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